Results tagged “doomsdayfare”

This morning, the MTA board met and passed Albany's proposed fare hikes and toll increases. Commuter rail fares will begin to increase on June 17; fares on subways and buses will change on June 28; bridge and tunnel tolls will increase on July 12. Fares are rising an average of 10%.

The MTA board will be meeting today to discuss the State Legislature-approved $2.26 billion bailout plan that provides some relief to the agency while raising fares 10% for commuters (this year, plus additional fare hikes in 2011 and 2013) and imposing a payroll tax for employers in 12 counties. On the upside, there are no major service cuts. During this meeting, the board is expected to reduce the doomsday fare hikes and service cuts it approved in March (we expect the Post to keep tabs on whether Nancy "I'm dating Macca" Shevell attends). The other big news is MTA CEO Lee Sander's resignation. Sander told WCBS 2, "I think it's fair to say I'm leaving because the governor wants me to. It's his prerogative choose who he wants to be chair and CEO of the MTA and I've made it clear that it's his choice... I would prefer to stay. For me, it was a dream job. I am very proud of the progress we had made in the two and a half years."

The State Senate and Assembly passed the $2.26 billion plan to bail out the MTA by way of a big payroll tax, a series of fare hikes spread over a few years (think of it as doomsday spread between 2009 and 2013) and numerous other surcharges, including a 50-cent taxi dropoff fee and increased costs for a driver's license. There will be no major service cuts; capital projects are only partially funded in the plan. Governor Paterson is expected to sign the plan; Paterson said, "[Commuters] have suffered, feeling that there would be dramatic increases in fares and service cuts that would actually, in the catchment area in which some lived, would almost prohibit them from getting to work."

The Senate Democrats' agreement on a plan to bailout the MTA is a small bit of relief because it proves that Albany can sometimes get things done after weeks of kicking and screaming. Sure, the Dems' plan isn't great (no bridge tolls on East or Harlem River bridges), and it's unclear whether capital projects will be funded, but at least the fare hike would only be 8%—and not 23-25%—and there would be few or no service cuts. A single ride would cost $2.25 (up from $2) while a monthly card would cost $88 (not $81).

Governor Paterson wants the State Legislature to vote on the State Senate's MTA bailout plan tomorrow and have it passed by Wednesday. This in spite of the fact that the Senate plan (which includes a payroll tax, taxi dropoff surcharges and Paterson's addition of reimbursing school districts for the payroll tax with state money) might not have the 32 votes it needs in the Senate—and some skepticism from Assembly Leader Sheldon Silver. Paterson told the NY Times, "What I’m saying is, this is not a plan that I think is going to get a blue ribbon. But what it does is it solves the huge immediate problem of the anxiety and fear that commuters have over the shocking increase in fares and the prospect of widespread service cuts." The Senate plan would include an 8% fare hike, vs. the proposed 25% hike in the doomsday plan. He also said he would, if the plan passed, look for ways to fund the MTA's capital program over the summer, but of course, there's also the additional deficit the MTA faces...

You know how Governor Paterson said he had an idea to break the State Senate stalemate and get an MTA bailout approved? Well the NY Post has the details: "[The] secret plan to sway state Senate Democrats holding out on an MTA bailout vote is to reimburse school districts that would have to pay the proposed payroll tax." Some State Senators have been unhappy about the payroll tax part of the Senate Dems' plan, which also has a $1 taxi dropoff surcharge and an 8% increase on fares (vs. the 25% doomsday fare hike). According to the Post, Paterson's idea would involve taking money from the state's general fund to "reimburs[e] every school district in the 12-county MTA service region, including NYC," at a cost of $60 million. The source said, "If you use the general fund to relieve school districts of the costs of the tax, the MTA still gets its money and schools get money back from the state." Still, it's unclear if this gesture is enough to sway support, though Albany is almost desperate enough to pass any ol' MTA bailout.

With news of another $621 million shortfall beyond an expected $1.2 billion deficit, the MTA is considering ways to deal with its troubled financial situation since the State Legislature (really, the State Senate) has been slow to agree on any sort of rescue plan. There may very well be another fare hike after the doomsday fare hike and service cuts that go into effect on May 31. It's so bad that MTA CEO and Executive Director Elliot Sander said he might even consider shutting down overnight subway service to save money: "I would not take anything off the table. [However] There have been reasons historically why that was not done and it may be that those reasons still exist."

Since it's unclear whether the State Legislature will make a deal to help out the MTA (they claim to want to, but there's no agreement on a plan), the MTA has no choice but to tell commuters what to expect with their unlimited Metrocards as "doomsday," May 31—the day fares go up about 25%— approaches.

Taking an earlier cue from the NY Post, now the Associated Press delves into the work habits of Nancy Shevell, transportation executive, MTA Board member and girlfriend of one Paul McCartney.